For the year 2024, Property tax levy growth will be capped at 2% for local governments that operate on a calendar- based fiscal year.
The said property tax levy growth cap percentage that was the same to the set property tax levy growth for school districts in January.
Assistant Deputy Comptroller, Simonia Brown explained that the state has set a limit of how much school districts and local government agencies the property tax levy, since the year 2012. Brown also explained that the property tax levy is the total amount billed to tax payers in their locality.
Brown explained that the reason of having a cap was to offer property tax relief to on tax payers by minimizing or limit their burden. Having a cap also provides residents in a locality or in a school district who have to pay taxes associated with school budgets, additional budget transparency.
Brown also stated that School districts can override the cap on property tax levy growth if they get 60% of voters’ approval.
Brown stated if school districts deems they should be spending more and want their students to get more programs beyond the property tax levy growth cap, they could do so through an override.
Property tax levy growth cap calculations will affect all counties, towns and fire districts, and will also affect 44 cities and 13 villages.
Accordint to The Sun, State Comptroller Thomas P. DiNapoli, said that the allowable property tax levy growth will be limited to 2 percent for a third successive year. DiNapoli also states that although the inflation rate started decreasing, it still poses a challenge to local governments and its budgets.
DiNapoli’s office calculated the 2024 inflation factor at 6.26 percent for local governments with a calendar fiscal year, which is above the 2 percent allowable property tax levy increase, which suggest potential higher costs facing these localities.